Ministry of Agriculture of Armenia will stimulate mandatory use of agricultural land

ArmInfo. The Ministry of Agriculture of Armenia will soon make a legislative initiative aimed at the mandatory use of agricultural land. This was the day before in the course of the seminar organized with the assistance of the Food and Agriculture Program of the United Nations, Armenian Minister of Agriculture Ignaty Arakelyan stated.

According to the minister, the document is aimed at the full use of unprocessed agricultural land on the basis of leasing a land plot, without depriving the owner of the right of ownership of land. The draft of the corresponding Concept, as reported by Arakelyan, was submitted for discussion by the executive body.  At the same time, the minister does not agree with the fact that the profitability in the sphere of agriculture in Armenia is currently low, which is why many leave their agricultural lands and migrate from the country. Problems with profitability, according to the head of the Ministry of Agriculture, are noted in those farmers who "do not know how to work with the land."

It is the lack of relevant knowledge, as well as the problems with mentality, that prevent farmers today from grouping up and taking advantage of profitable financial instruments, such as, for example, the purchase of agricultural equipment in financial leasing under the state program. "It makes no sense to use the leasing program if the land plot does not exceed 60 hectares." In order to offset the initial payment for its acquisition at the rate of 20% of the cost of equipment, the villagers should unite and together decide on the purchase of one tractor, but they do not go for it. The problem is the mentality," the minister said.

Earlier, Armenian Prime Minister Karen Karapetyan expressed concern over the extremely low level of use of irrigated land on the territory of the republic. In particular, according to the head of the government, only in Ararat valley the fixed area of irrigated lands is about 24 thousand hectares. "These lands are the property of individuals or legal entities, and the current legislation does not provide for clear, regulated mechanisms to stimulate land use, prosecution for non-use of land, as well as termination of property rights in respect of land real estate," he said.

The agricultural sector records a decline for two consecutive years. Despite the fact that Armenia's GDP grew by 7.5% in 2017, while in the previous year it slowed down to 0.2% from 3.2% in 2015, the agricultural sector, slowing down in the recession, only slowed down to 3% from 5.2% in 2016.  Nevertheless, on March 21 this year in an interview with ArmInfo correspondent, Ignaty Arakelyan stated that by the end of 2018 the sphere of agriculture, at last, promises to fix growth. "Growth will be a fact, as there is already some activation, a program has been introduced to support the sphere of drip irrigation and the creation of intensive gardens, installation of anti-hail networks and provision of working capital for procurement companies guarantee that the products produced by him will be procured, "the minister explained.